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A retailer is deciding how many of a certain product to stock. The historical probability distribution of sales for this product is 0 units, 0.1;
A retailer is deciding how many of a certain product to stock. The historical probability distribution of sales for this product is 0 units, 0.1; 10 unit, 0.2; 20 units, 0.3, and 30 units, 0.4. The product costs $18 per unit and sells for $40 per unit. Any unsold units will be discarded. The best EMV for this case is
a.
none of the answers is correct
b.
$260 profit
c.
$414 profit
d.
$200 profit
e.
$336 profit
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